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AMD's shares slip after gains when earnings are forecast



Advanced Micro Devices Inc. Shares fell in a lengthy session on Tuesday after the chip maker reported earnings that met expectations against tariff caps, but revealed revenue prospects that fell below Wall Street's consensus due to weaker-than-expected console sales.

AMD

AMD, + 1.16%

shares, which fell more than 5% after hours, were last reduced by 3% after 1.2% rose in the regular session and closed at $ 33.87. For comparison, the S&P 500 index

SPX, -0,26%

decreased by 0,3%, the technical heavy Nasdaq Composite Index

COMP, -0.24%

slipped 0.2%, and the PHLX semiconductor index

SOX, -0,26%

decreased by 0,3% in the regular session.

AMD expects third-quarter revenue from $ 1.75 billion to $ 1.85 billion, while analysts forecast sales of $ 1.94 billion on average, according to FactSet.

Read: Microsoft kills it in all businesses except one

"The consistent and annual increase is expected to be driven by growing EPYC and sales of Radeon products, partially offset by more low than expected semi-industrial sales, "said Devinder Kumar, AMD's chief financial market, during the call. Game console chips are in AMD's half-way sales.

"AMD met expectations for the quarter but lowered its forecast based on the softness of the gaming console market," says Pat Moorhead, chief analyst at Moor Insights and Strategy. comments.

"I believe this softness is driven by users who are excited about Microsoft's next-generation consoles

MSFT, -0.48%

(Scarlett) and Sony (PS5) and delayed purchases, "said Moorhead." Keeping that in mind, sales of Microsoft and Sony consoles have also decreased recently. "

For more: Microsoft kills it in all but one business

"In the second quarter, we stopped shipping to customers added to the US corporate list," said the CEO of AMD Lisa Soo during the conference. "Although we remain cautious given the fluidity of the situation, the impact so far has been limited

The company reported a second quarter of net income of $ 35 million, or 3 cents a share, compared to $ 116 million, or 11 cents a share, during the period. A year ago, adjusted earnings were 8 cents a share, down $ 1.53 billion from $ 1.76 billion in the previous quarter.

Analysts surveyed by FactSet predicted a profit of 8 cents per share on revenue of $ 1.52 billion.


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